Business
CUC announces 2006 year-end audited financial results
CUC announces 2006 year-end audited financial results.
About this update from Caribbean Utilities Co. Ltd. Class A
[{"type":"text","content":"\n\n\n\n\nLISTED FOR TRADING IN UNITED STATES FUNDS ON THE TORONTO STOCK\nEXCHANGE/TRADING SYMBOL: CUP.U\n\nGRAND CAYMAN, Cayman Islands, July 31 /CNW/ - Caribbean Utilities\nCompany, Ltd. (\"CUC\" or \"the Company\") announced today its audited financial\nresults for the year ended April 30, 2006.\n\nFinal Return\n\nCUC submitted to the Cayman Islands Government (\"Government\") today its\nFinal Return containing its year-end 2006 audited results confirming that the\nCompany is entitled to a 2.0% rate increase effective August 1, 2006 under its\ncurrent Licence. This shortfall on Return on Capital Employed (\"ROCE\") is\nprimarily a result of increased operating expenses and infrastructure\ninvestment. CUC will not seek to implement this rate increase, as it agreed\nwith Government that it would freeze basic rates during the period of the\nHurricane Ivan (\"the hurricane\") Cost Recovery Surcharge (\"CRS\") (see \"Cost\nRecovery Surcharge\" below).\n\nFinancial and Operational Highlights for the Year Ended April 30\n\n(all figures reported in United States dollars unless otherwise noted)\n\n>\n\nEarnings\n\n\"Whereas 2005 was considered a restoration year, 2006 was indeed a\nchallenging recovery year, both for CUC and customers,\" stated Richard Hew,\nCUC President and Chief Executive Officer. \"We are pleased to report, however,\nthat the reconstruction and replacement of CUC's damaged generation facilities\nhad been substantially completed and the total number of active customers\nfully recovered to a year-end level of 21,115 compared to 21,127 at year-end\n2004. Monthly energy sales are now exceeding those of the same period prior to\nthe hurricane as the economy has staged a full recovery.\"\nEarnings for the year were $22.9 million, or $0.87 per share, compared to\n$4.2 million, or $0.13 per share, in 2005. The significant year-over-year\nincrease is a reflection of CUC's recovery from the hurricane in 2005. The\nCompany's continued post-hurricane sales recovery, business interruption\n(\"BI\") insurance proceeds and CRS revenue have positively impacted fiscal 2006\ncompared to 2005.\nConversely, increased insurance, leased generation, maintenance,\nconsulting fees and interest expenses negatively impacted earnings compared to\n2005. These increased costs were partially offset by a gain on the hurricane\nclaim settlement o...